Question

which of the following may be a reason for the increase in income inequality in recent decades. (Check all that apply)

A. Tax cut policies in the 1980's

B. Economic shifts that have increased demand for highly skilled workers

C. Economic shifts that have increased demand for low skilled workers

D. Globalization and technological changes

E. a larger share of the population who are retired

Answer 1

following may be a reason for the increase in income inequality in recent decades

A. Tax cut policies in the 1980's

more regressive tax laws were made which led to increase in income inequality .

B. Economic shifts that have increased demand for highly skilled workers

demand for high skilled labor increased who can work on machines and computers than manual labor so the many people lost their job and unemployment and income inequality increased .

D. Globalization and technological changes

cheap labors are available in Asian countries like India and China so the labors who are low skilled in United States faced tough competition from cheap skilled labor of Asian countries and income inequality increased .